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Revenue Per Click

Revenue Per Click

Contents:

 

*A conversion is when a user performs a desired action (being tracked) on your website. This could be buying a product, downloading a file, clicking a link or any other desired action. Typically conversions are linked either directly or indirectly to revenue.

Revenue Per Click

Quick Description = Average Value (often revenue) Per Click

Calculation: Revenue / Clicks |  (Total Conv. Value / Clicks)

Referred to as = Conv. value / click

Similar to ‘revenue per conversion’ this metric takes total revenue and divides it by total clicks to get the average revenue per click. The specific metric ‘Conv. value / click’ “is adjusted to reflect only clicks that can lead to conversions”.

This metric is not commonly used in day-to-day activities, perhaps as part of a wider or deep analysis of an account or in a monthly report. This figure is a good indication of where the Click Revenue is coming from, but doesn’t provide huge assistance when making recommendations. Revenue per Conversion is a better average than revenue per click for paid search.

All Conversions Value / Click

Quick Description = Average Value (often revenue) Per Click (For ‘All Conversions’)

Referred to as = All Conv. Value / Click

This is the same as the above metric but this includes the value of ‘all conversions’ (see ‘All Conversions’) where values have been set. This is only useful or relevant if you track additional conversion types (which have conversion values).

Benefits

This metric is a good indicator of campaign performance, especially if you have multiple campaigns promoting the same products, where a comparison can be made between each campaign.

This is an ‘average metric’ so every click will not net you the value for this metric but on average this is the value per click. For example, lets assume we have a campaign generating revenue of $500 and it received 250 Clicks, you would have a revenue per click of $2.

You can compare this to the average cost per click (Avg. CPC) for the same campaign; ideally the CPC will be lower than the revenue per click.
Once you know the Cost and Revenue per click you can easily calculate the profit per click by doing the following:

CPC - Revenue Per Click = Profit Per Click

For example if you had an Avg. CPC of $1.50 and a revenue per click of $2 you would have an average profit per click of $0.50, which gives you a broad idea of how much money you can make by increasing budget. Continuing this example; if you increase daily budget from $100 to $200, you could expect to see the following:

$100 / $1.50 = 66 More Clicks =

66x $0.50 = $33 More Profit

More Information

If you liked this guide on Revenue Per Click, you may also be interested in the following guides related to this subject:

  • ROAS (Return on Ad Spend)
  • ROI (Return on Investment)
  • Converted Clicks
  • All Conversions
  • Converted Click Rate
  • Conversion Tracking
  • Conversion Rate
  • Cross Device Conversions
  • Cost Per Converted Click
  • Avg. CPC (Cost Per Click)
  • Revenue Per Conversion
  • Conversion Optimiser

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